Labor & Human Rights

In accordance with the Labor Standards Act, regulations of the Hsinchu City Government (where our headquarters is located), and requirements from the Financial Supervisory Commission for listed companies, we have established a management system to safeguard labor rights and fundamental human rights. All governing documents under this system are duly approved, implemented, periodically reported, and subject to irregular audits by the respective authorities.

1. Labor Relations and Employee Benefits

To safeguard employee rights and well-being, the Company has established a comprehensive set of systems and procedures:

<Labor-Management Meeting Regulations>
In compliance with the Labor Standards Act, a labor-management communication platform is established, with quarterly meetings held (and ad-hoc meetings when necessary). Representative quotas, election processes, attendance thresholds, and meeting scopes are clearly defined. Meeting agendas include: employee turnover, labor productivity, working conditions and workplace improvements, employee welfare, labor relations discussions, and proposals. Resolutions are reviewed by the General Manager and filed with the competent authority before implementation.
<Compensation Committee Charter>
Ensures a sound remuneration framework for directors and executives, defining committee functions, composition, tenure, authority, and meeting procedures. Resolutions and minutes are documented and enforced upon approval.
<Work Rules>、<Payroll Cycle>、<Attendance Management>、<Personnel Management Policies>
These govern employee compensation, attendance standards, overtime limits and pay, leave entitlements, benefits, termination, disciplinary measures, retirement, recruitment transparency, promotion and transfer mechanisms, training, performance evaluations, rewards and penalties. Additional protections are provided for female employees regarding overtime restrictions, maternity care, nursing, and postpartum employment.
<Payroll Cycle>
Includes quarterly performance evaluations, career development planning, and prioritization of internal recruitment opportunities.
We ensure that wages fully comply with applicable labor laws, exceeding minimum wage standards and including lawful overtime pay and statutory benefits. Deductions as a form of discipline are strictly prohibited. Employees receive detailed pay statements each cycle to guarantee transparency and accuracy across all employment types, including permanent, temporary, and dispatched workers.
Currently, over 75% of employees are local hires, while dispatched workers are maintained at below 5% of the total workforce.

2. Prohibition of Forced Labor

Regarding the issue of prohibiting forced labor, we have established the following systems and procedures:

<Personnel Management Guidelines>and<Work Rules>strictly prohibit the use of forced, bonded (including debt-bonded), or indentured labor, involuntary or exploitative prison labor, slavery, or human trafficking. This includes the transportation, harboring, recruitment, transfer, or receipt of workers by means of threats, force, coercion, abduction, or deception in order to obtain labor or services.
For local employees, employment is governed by the <Labor Contract> and <Payroll Cycle>, which cover job responsibilities, workplace location, working hours, confidentiality and non-compete obligations, intellectual property and ownership of work results, salary and bonuses, wage and benefit distribution, as well as disciplinary and legal procedures.
For foreign migrant workers, employment is governed by the <Factory Worker Employment Contract> recognized by the Philippine Overseas Employment Administration (POEA). This contract includes the employment period, work obligations, working hours, compensation, leave, labor insurance, and definitions for termination of employment.
Both the <Labor Contract> and the <Factory Worker Employment Contract> are essential components of the recruitment process. All workers must be provided with an employment agreement written in their native language, clearly describing the terms and conditions of employment. For overseas migrant workers, such agreements must be provided before departure from their home country, and upon arrival in the host country, the agreement must not be replaced or altered, unless changes are required to comply with local laws and provide equal or better terms.
The <Factory Labor Contract> stipulates that all work must be voluntary. Workers have the right to freely resign at any time, and if they provide reasonable notice in accordance with the labor agreement, they may terminate their employment without penalty. Employers, agents, and sub-agents must not withhold, destroy, conceal, or confiscate employees’ identity documents or immigration papers, such as government-issued IDs, passports, or work permits. Employers may only retain such documents when required by law, and even in such cases, workers must always have access to their documents. Workers must not be required to pay recruitment fees or any related employment costs to employers, agents, or sub-agents. If it is discovered that workers have paid such fees, they must be reimbursed in full.
The <Child Labor Prohibition Procedure> strictly forbids the use of child labor in any manufacturing process. “Child labor” is defined as the employment of anyone under the age of 15, under the age for compulsory education, or below the minimum legal working age in the country/region—whichever is highest. Participants must implement appropriate mechanisms to verify workers’ ages. Legally compliant workplace learning programs are exempt from this restriction. Workers under the age of 18 (young workers) must not engage in work that may endanger their health or safety, including night shifts or overtime. Participants are required to properly maintain student records, carefully review educational partners, and safeguard student rights in accordance with applicable laws and regulations, thereby ensuring appropriate management of student workers. All student workers must be provided with adequate support and training. In the absence of local laws, the wages of student workers, interns, and apprentices must be at least equal to those of other entry-level employees performing similar work.

3. Fundamental Human Rights

Regarding fundamental human rights, we have established the following policies and procedures:

The <Personnel Management Regulations> prohibit discriminatory practices in daily management activities, such as accommodation and transportation, on the basis of race, skin color, age, gender, sexual orientation, gender identity or expression, ethnicity or nationality, disability, pregnancy, religion, political affiliation, group membership, veteran status, protected genetic information, or marital status.
The <Personnel Management Regulations> and the <Gender Equality in Employment Act> address anti-discrimination and anti-harassment measures. Participants are required to commit to providing a workplace free from harassment and unlawful discrimination. The company shall not discriminate against or harass employees in recruitment or employment based on race, skin color, age, gender, sexual orientation, gender identity or expression, ethnicity or nationality, disability, pregnancy, religion, political affiliation, group membership, veteran status, protected genetic information, or marital status. Such discrimination must not affect wages, promotions, rewards, or training opportunities.
Employees must be provided with appropriate facilities to practice their religion. Furthermore, employees or job applicants shall not be subjected to discriminatory medical examinations, including pregnancy tests or virginity checks, or other physical examinations. Female employees’ rights during pregnancy, maternity, and breastfeeding must be safeguarded in accordance with applicable protections, benefits, and wage regulations. These measures are implemented in alignment with the ILO Discrimination (Employment and Occupation) Convention.
The <Workplace Sexual Harassment Prevention, Complaint, and Disciplinary Regulations> prohibit harsh or inhumane treatment of employees, including violence, sexual violence, sexual harassment, sexual assault, corporal punishment, psychological or physical coercion, bullying, public humiliation, or verbal abuse. Threats of such conduct are also forbidden. Disciplinary policies and procedures must be clearly defined and communicated to all employees.
The <Corporate Social Responsibility Code of Practice> requires participants to respect employees’ rights to freely associate and join unions, engage in collective bargaining, and participate in peaceful assemblies in accordance with local laws, while also respecting employees’ right to refrain from such activities. Employees and their representatives must be able to openly communicate with management and share concerns about working conditions without fear of discrimination, retaliation, intimidation, or harassment. Foreign migrant workers must not be compelled to attend assimilation, political, or ideological training courses.
An annual audit of labor brokers and employment agencies is conducted to ensure compliance with company standards and local regulations, and to confirm that no forced labor practices are involved.

4. Gender Equality

Regarding gender equality, we have established the following policies and procedures:

The <Workplace Sexual Harassment Prevention, Complaint, and Disciplinary Regulations> and the <Gender Equality in Employment Act> stipulate that all employment processes—including recruitment, screening, hiring, assignment, placement, performance evaluation, promotion, salary, retirement, termination, and dismissal—must be free from gender-based discrimination.
The <Code of Corporate Social Responsibility Practices> applies to the overall operations of our company, its group, and subsidiaries. Its purpose is to actively implement corporate social responsibility, enhance the quality of life for employees, communities, and society, and establish a competitive advantage grounded in corporate responsibility.
At present, the difference between the number of female and male employees is less than 10%, and the average salary gap between female and male employees is within ±10%.

The following four issues—Labor Relations and Employee Benefits, Prohibition of Forced Labor, Fundamental Human Rights, and Gender Equality—may be reported through three grievance channels if violations occur:

(1) Grievance Hotline:：(02)2698-1585 ext. 271 or (03)530-2747 ext. 302

(2)Grievance Email：[email protected] or [email protected]

(3) Physical Mailbox of the General Manager

In accordance with the <Internal and External Grievance and Whistleblowing System>, reports may include but are not limited to dishonest behavior, misconduct, or sexual harassment. All whistleblowers and the content of reports are kept strictly confidential. Once an investigation is completed, the whistleblower will be notified of the outcome.

The company also follows the <Regulatory Identification and Management Procedure>, conducting quarterly reviews of labor, ethical standards, occupational health and safety, and environmental regulations. Assessment results are documented, and relevant departments are notified to update, revise, or eliminate related documents, followed by communication and training for employees.
Under the <Social Responsibility and Business Ethics Risk Assessment Management Measures>, we have established a risk assessment process to identify labor-related impacts and risks. Each year, departments conduct evaluations of their operational activities using the Social Responsibility and Business Ethics Risk Assessment Form. Preventive actions and control measures are then formulated for high-risk items.